Do you have to claim income a dependent made?

Not on your income tax return. But the dependent may want to file the dependents own income tax return claiming the dependents income on it.

The dependent cannot claim the dependent own exemption on the dependent own income tax return and will have to make sure that the dependent indicates on the dependent income tax return that the dependent is eligible to be claimed as a dependent on another taxpayers income tax return.

Go to www.irs.gov and use the search box for Publication 17 (2009), Your Federal Income Tax for Individuals

http://www.irs.gov/publications/p17/index.html

Go to chapter 3 Exemption then

Your Own Exemption

You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent.

Then Exemptions for Dependents

Dependent not allowed a personal exemption. If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. This is true even if you do not claim the dependent's exemption on your return or if the exemption will be reduced under the phaseout rule described under Phaseout of Exemptions, later.

I believe the above is only partly correct as to what your really asking.

For example, if you have a child that has income (by employment, by inherritance, etc), even though you may list them as a dependent, that persons income is TAXABLE at your rate. (In other Words, because the adult has reasonable income and pays tax at say 25%, if he shifts income to, or his child has income of an amount that presumably would be taxed much less (tax on 10K annually being virtually 0 %), essentially that income must be included as yours to get taxed at the higher rate.

See the many publications on "Kiddie Tax".